A continuous formulation for a location-inventoryproblem considering demand uncertainty

Schuster Puga, Matias;Tancrez, Jean-Sébastien
(2015) INFORMS — Location: Philadelphia (1.November.2015)

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Abstract
We propose a location-inventory model that can be applied to design large supply chain networks. We address a continuous non-linear formulation that minimizes transportation, inventory, order, safety stock and facility opening costs. We solve the non-linear model with an heuristic algorithm that relies on the fact that the model simplifies to a continuous linear program when two auxiliary variables are fixed. We show the efficiency of the algorithm with the computation of numerical experiments.
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  • Louvain School of ManagementOperations and Information

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Schuster Puga, M., & Tancrez, J.-S. (2015). A continuous formulation for a location-inventoryproblem considering demand uncertainty. INFORMS, Philadelphia. https://hdl.handle.net/2078.5/186169